Purchasing gold above a certain monetary limit requires your PAN card or similar KYC document.
If you purchase gold worth Rs 2 lakh or above, you will have to furnish your PAN card details.
Furnishing of PAN card under Section 114B of the Income Tax Rules is mandatory for purchasing gold above Rs 2 lakh.
You can buy gold up to Rs 2 lakh only with cash, an amount exceeding this has to be paid through card or cheque along with PAN card details
Under section 269ST of the Income Tax Act, you cannot do cash transactions exceeding Rs 2 lakh in a day for purchasing gold
Purchasing gold for amount more Rs 2 lakh in cash in a single day, is subject to penalty equivalent to the cash transaction amount under Section 271D of the Income Tax Act.
Gold was designated as reporting entities as government brought the gems and jewellery sector under Prevention of Money Laundering Act (PMLA) 2002.
These reporting entities are required to adhere to KYC norm, which means declaration of PAN or Aadhaar for cash transactions surpassing a specified limit.